A growth of 17.7%, supported by buyout deals
14.9 billion dirhams, revenues of «DP World» within 6 months
DP World succeeded in achieving flexible financial results during the first half of this year. Archives
Dubai Ports World succeeded in achieving flexible financial results during the first half of this year, while maintaining a strong level of cash liquidity, as the value of earnings before interest, taxes, depreciation and depreciation increased by 1.1% to about 5.62 billion dirhams, on the basis of similar comparison, after Excluding the sale of lands to Emaar during the previous period.
Dubai Ports World stated, in a statement yesterday, that the EBITDA margin declined to 37.6% due to the change in the valuation elements, as companies with lower profit margins were merged into its portfolio, while the reported revenues increased by 17.7%. This amounted to about 14.9 billion dirhams, thanks to the company's acquisitions.
Proceeds
In detail, the "Dubai Ports World Ltd." company announced yesterday that it recorded flexible financial results that responded to the changes during the six-month period ending on June 30, 2020, with revenues amounting to $ 4.076 billion (about 14.9 billion dirhams) during the first half of this year. A growth of 17.7%, supported by the company's acquisitions, while revenues decreased by 11.6% on a like-for-like basis, and by 3.4% with the exception of the sale of land to Emaar in 2019.
Earnings
Adjusted earnings before interest, taxes, depreciation and amortization amounted to $ 1.534 billion (about 5.62 billion dirhams), while the adjusted EBITDA margin was 37.6%, while the adjusted EBITDA margin was 43.9% on a like-for-like basis.
The EBITDA margin (excluding the sale of land to Emaar in 2019) increased by 1.1% on a like-for-like basis, reflecting the resilience of the company's business group.
The profits of the owners of the company declined during the period to 313 million dollars (about 1.14 billion dirhams). Before the items that are separately disclosed, it recorded a decrease of 58.5% on the basis of the announced reports, and by 34.5% after excluding the sale of lands to Emaar in 2019. .
Cash
In addition, the strong cash flow resulting from operations continued, as it recorded $ 1.124 billion (about 4.12 billion dirhams) during the first half of this year, compared to $ 1.046 billion (about 3.8 billion dirhams) during the same period in 2019.
The company achieved revenues of $ 1.5 billion (5.5 billion dirhams) from the issuance of hybrid permanent bonds, as the proceeds of the hybrid bonds are used to pay the debts of the International Ports and Free Zones Company ahead of schedule, after the end of the first half of the year.
efficiency
"There is no doubt that the (Covid-19) pandemic has created unprecedented challenges in the history of the entire shipping sector, as (DP World) recorded a 3.9% decrease in volume," said Sultan Ahmed bin Sulayem, Chairman and CEO of the Dubai Ports World Group. Total container handling during the first half of this year, compared to a decline of 10% in the global sector, which represents a relatively good performance for the company when compared to the overall performance of the sector.
Bin Sulayem added, "Nevertheless, during this period, the value of profits before deducting interest, taxes, depreciation and depreciation, on the basis of like comparison, excluding the sale of land in the previous period, increased by 1.1%, which reflects our ability to manage costs effectively."
"This performance confirms the efficiency of our strategies and our work in the appropriate locations, with a focus on goods from the country of origin to the final destination," he said.
Progress
Bin Sulayem affirmed that, "Despite the difficult challenges, we have been keen to achieve progress in our strategy and provide integrated supply chain solutions to cargo owners, by focusing on digitizing logistics services and developing new solutions for many other sectors, such as the auto, oil and gas, and fast-consumption commodities sectors." .
He said, "We were pleased with the positive feedback from the owners of the goods, and we now continue to provide effective solutions to our customers, which heralds more positive results in the future."
Flexibility and strength
Sultan Ahmed bin Sulayem, Chairman and CEO of the Group of "Dubai Ports World", said that thanks to the flexibility and strength that the company enjoys in all its activities, it is due to its awareness of the importance of investment during the past years, in keeping pace with the changes in the sector.
He added, "Our ability to adapt and develop is the keyword behind our success and excellence, and we will continue our development efforts to achieve further growth."
Bin Sulayem added, "We believe that this long-term strategy is not commensurate with the short-term goals that characterize the stock markets. Therefore, we decided to return to private ownership to focus on developing the company, in line with its objectives during the next stage."
Sultan bin Sulayem:
“Despite the difficult challenges, we have been keen to provide integrated supply chain solutions to cargo owners.”
4.12
Billions of dirhams of cash generated from operations.